Tariffs are pushing prices higher and consumers are feeling the hit, Fed's Beige Book shows

Economic Overview - President Trump's tariffs are contributing to rising inflation as companies face the choice of absorbing costs or passing them onto customers [1][2] - Overall economic growth has "changed little" since the last report, with labor markets remaining "largely stable" and muted demand across most of the Fed's 12 districts [1] Price Impact - Tariff-induced input cost increases have been reported across many districts, with varying degrees of these costs being passed on to final prices [2] - Some firms have kept prices unchanged to remain competitive, while others have fully passed on higher import costs to customers [2] - A few districts noted that slowing demand has led to price decreases for certain materials [2] Trade War Developments - The trade war has intensified, with China imposing restrictions on rare earth materials and Trump threatening 100% tariffs on Chinese imports [3] Economic Data Release - The Bureau of Labor Statistics has been called back to release the consumer price index (CPI) report, which is crucial for gauging inflation and adjusting Social Security benefits [4] - The CPI report, originally scheduled for release on Wednesday, will now be published on October 24, just before the Fed's policy meeting on October 28-29 [4] Consumer Spending Trends - Consumer spending has slightly decreased in recent weeks, although there is strong spending on luxury items and travel by upper-income earners [5] - Lower and medium-income earners are focusing on discounts and promotions [5] - Future expectations have improved in some districts, but caution remains in areas like Philadelphia due to the ongoing government shutdown [5]